Microsoft has confirmed its plans to release a 120GB model of the Zune, after a FCC filing report revealed the plans before the company could make an official announcement.

Microsoft also promises “new Zune pricing” and “new Zune software.” Unless that means turning Zunes into iPods or giving them away for free, it seems unlikely a Zune with ridiculous amounts of storage (who really needs to have 120GB of music at their fingertips?) will bring the Zune guy back, or increase Microsoft’s market share. [Gizmodo]